Maruti Vitara Brezza Pricing to be very Competitive

Maruti Suzuki, which launched its all-new Vitara Brezza version on Tuesday, will reap the benefits of the competitive pricing of the compact SUV, says Ambit Capital Research.”Brezza has been slated to sell at a starting cost of Rs. 6.99 lakh (for the foundation LDi version). This is around 15 per cent less expensive compared to the entry level version of EcoSport and close to 4 per cent less expensive compared to the entry level TUV300 version,” the brokerage said.

Ambit estimates around 3,000 units per month in 2016-17 to be sold by the Vitara Brezza, similar to present monthly sales quantities of peers like Ford TUV300.Based on estimates, the share of utility vehicles in the passenger vehicles section has gone up in FY16 to 20 per cent, but the share in the section of Maruti is around 15 per cent.Maruti has failed to establish its dominance regardless of the start of refreshed Ertiga as well as the debut of the S Cross in the utility vehicle space last year.

In the Union Budget, Finance Minister Arun Jaitley revised taxes of 1 percent as luxury tax and up to 4 per cent cess on new autos priced higher than Rs. 10 lakh.The Ignis, another sub compact crossover SUV from Maruti, is anticipated to be also unveiled later this year.

The national car industry will probably stop the present financial year with 8 per cent increase and is anticipated to grow in FY17 at 11 per cent.National auto sales increase could drop to 9 per cent in FY17 in case the monsoon rains are slender as that will nullify incomes in rural areas, said deputy director general at SIAM, Sugato Sen.

Maruti Suzuki shares, damaged by the appreciation in yen, are on course for their third straight increase. The stock is up almost 5 per cent since the start of Brezza.

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